Nouveau Life Pharmaceuticals Inc (OTCMKTS: NOUV) is still struggling for direction after succumbing to bearish pressure over the past two years. The Company has seen its prospects and sentiments take a significant hit if recent price action activity is anything to go by.
Nouveau Life Pharmaceuticals Inc Price Analysis
Investors have had to contend with reduced market and share price activity as Nouveau Life Pharmaceuticals continues to languish at all-time lows. The fact that the stock remains engulfed in long-term bear trend all but continues to compound the stock’s woes in the market.
After plunging below the $0.01 mark in 2017, the stock has struggled to bounce back. The underperformance could as well be attributed to a lack of news flow, highly needed to trigger investors’ attention.
As it stands, Nouveau Life Pharmaceuticals is languishing at the $0.0005 level and in dire need of groundbreaking catalysts if it is to have any chance of bottoming out. Below the $0.01 psychological level, the stock remains bearish and likely to continue trading sideways as has been the case for the better part of the past two years.
However, things could change for the better, Nouveau Life Pharmaceuticals, having shared a string of updates that indicates its core business is gaining traction in the multibillion-cannabis sector.
Before we look at the catalyst likely to trigger price action activity, let us first understand what Nouveau Life Pharmaceuticals does in a bid to generate shareholder value.
Nouveau Life Pharmaceuticals Inc Background
Nouveau Life Pharmaceuticals bills itself as a development stage company engaged in the development and distribution of nutraceutical products. The Company’s core business revolves around providing alternatives to prescription drugs. In the recent past, the firm has diversified its operations with expansion into the cannabis sector in pursuit of opportunities for growth.
After a long period of subdued market activity, Nouveau Life Pharmaceuticals outlook could inch higher on the confirmation of growing ties with Kali Inc (OTCMKTS: KALY). The two are currently working on the development of a cannabis extraction lab.
The proposed lab will go a long way in complimenting, Nouveau Life Pharmaceuticals 100-acre hemp farm. The Company also operates a 25-greenhouse grow operation with plans in place to build an additional state of the art greenhouse in collaboration with Kali Extracts.
In addition, Nouveau Life Pharmaceuticals has entered into a strategic partnership with e-commerce site USMJ. Under the terms of the agreement, the two are to work together on the development of proprietary cannabis cultivar as part of an effort of enhancing Kali’s extracts.
The investments seek to strengthen Nouveau Life Pharmaceuticals prospects in the multi-billion-dollar cannabis industry where demand for cannabis products and derivatives is on the rise.
Expansion of cannabis cultivation and production operations follows the confirmation that Nouveau Life Pharmaceuticals and Puration Inc (OTCMKTS: PURA) are planning to issue a dividend of NOUV stock to PURA shareholders. The offering will result in the spin-off of PURA’S cannabis cultivation business to NOUV.
The two have also confirmed plans to launch a new company website that will facilitate the next steps in the dividend distribution.
“As the CEO of PURA and the interim CEO of NOUV, I can tell you I am pleased with the operational progress of both companies. PURA has recently expanded its production operations of EVERx CBD Sports Water to include a second plant and NOUV is moving forward with its first US hemp crop. Next week PURA will introduce EVERx in South Africa at the Arnold Sports Festival, and NOUV’s making great strides in carving out its own niche in the legal recreational marijuana market in Canada,” said Mr. Brian Shibley.
Nouveau Life Pharmaceuticals Inc failure to bounce back after hitting the floor is a serious point of concern. However, the Company pushing for opportunities in the cannabis sector is a development that could help reinvigorate growth prospects, consequently strengthen market sentiments.
The stock could receive a significant boost on the company confirming improved cannabis operations. Given that the stock has taken a significant hit over the past few years, it would take groundbreaking catalysts to trigger renewed investors interest.
Until the stock rallies and finds support above the $0.01 psychological level, it might be wise to maintain a cautious approach.
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Disclosure: We have no position in NOUV and have not been compensated for this article.